A hypervisor is actually software that enables virtualization by allowing multiple VMs, which stand for virtual machines, to run on a physical machine. It manages hardware resources like storage and allows multiple VMs to utilize what they need from the CPU, memory, and so forth.
The hypervisor then creates and manages virtualized environments using cloud computing; therefore, several virtual servers can be hosted on a single physical machine by cloud providers. This would improve resource efficiency and scalability because flexibility allows users to provision VMs whenever they require them for any kind of application.